How are miner fees calculated?

Bitcoin transactions are sent to the network with an extra fee attached. This fee is paid directly to the miner who adds the transaction to a block. Miner fees are based on the size of the transaction being sent in bytes. Miner fees are not impacted by the amount of bitcoin being spent.

The fee rate is generally measured in Satoshi/byte. A Satoshi is the smallest unit of bitcoin (0.00000001 BTC). A standard bitcoin transaction is around 250 bytes. So, a standard transaction with a fee rate of 100 sat/b would be calculated as: